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10 Cards in this Set
- Front
- Back
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What is a What-If Analysis? and what are some examples |
Changing the values in cells to see how those changes will affect the outcome of formulas on the worksheet Ex. Goal Seek Data Tables |
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What is CVP analysis? (break even point) |
Costume-Volume Profit is the expression of the relationship between a company's expenses, volume of business and reuslting profit or net income |
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What are the types of expenses ? |
Variable expenses - Changing in proprtion to amount of business in a company Fixed expense - Paid regardless of sales volume |
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How do you perform a what-if analysis? |
- Change the value of a worksheet cell (input cell) - Observe its impact on the calculated cells (the result cells) |
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How do you perform goal seeking? |
- Data --> Data tools --> What-If Analysis --> Goal Seek - Set cell box --> Result cell --> To value box --> Specify value (goal) - In the By changing cell box, specify input cell - Click OK |
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How does Goal Seek help decision analysis? |
- Useful for doing simple queries to see what the effects are of changing the values of certain variables |
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What is Solver? and does it do? |
A separate program that searches for the best solution to a problem with several variables. It's used to find the best way to allocate resources |
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What are the three parameters of Solver? |
1. Target cell typically contains a formula that is directly or indirectly based on the adjustable cells and constraints. 2. Adjustable cells are the cells whose values are adjusted until the constraints are satisfied 3. Constraints specify the restrictions (typically in the form of inequalities or equations) |
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What are the requirements of Linear Programming (LP) |
- Seek to maximze or minimize some quantity (usually profit or cost) expressed an objective function - The prescence of restrictions, or constraints, limits the degree to which we can pursue our objective - There must be alternative courses of action to choose from - The objective and constraints of problems must be expressed in terms of linear equations or inequalities |
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How does Solver relate with Decision Analysis? |
- Defines the problem - Can minimize/maximize inute cell or set the output cell to a particular value using identified input ranges, output cells, and constraints - Defines the paremeter using the Solver dialog box |
